USD/CNH Technical Analysis: Looks north after strong defense of 6.85

• The USD/CNH created a big bullish hammer candle while defending $6.85 support, adding credence to the bullish divergence of the relative strength index (RSI) witnessed yesterday.
• As a result, the pair could soon re-test the 100-hour moving average (MA), currently located at 6.8985.
• On the downside, acceptance below 6.85 would signal a continuation of the sell-off from the Aug. 15 high of 6.9584.

Hourly chart

Daily Chart: 6.87

Daily High: 6.8795

Daily Low: 6.8462

Trend: Bullish

Resistance

R1: 6.8986 (100-hour MA)

R2: 6.91 (resistance as per the hourly chart)

R3: 6.9584 (recent high)

Support

S1: 6.8693 (200-hour MA)

S2: 6.8462 (session low)

S3: 6.8129 (Aug. 8 low)